The Economic Crime and Corporate Transparency Act 2023 (ECCTA) has ushered in significant amendments, particularly impacting overseas entities. In this comprehensive guide, we delve into the intricacies of these changes, offering insights and actionable steps.
Address Information
Under ECCTA, overseas entities now need to provide their ‘principal office’ instead of the registered office. This aligns with the Companies Act 2006, necessitating a potential change for entities using a registered agent distinct from their principal office.
The Required Action: Overseas entities must review and, if necessary, update their registered office information to align with the principal office.
Land Information
Overseas Entities are now obligated to disclose title numbers of all qualifying UK estates they own, verified by a UK regulated agent. This marks a substantial change, impacting all overseas entities holding UK land.
The Required Action: Comprehensive disclosure of UK land details is now required from all overseas entities.
Expansion of Trust Information
ECCTA expands the information required for trusts. Notably, registerable beneficial owners of settlors or grantors must now be disclosed. Trustees and trusts are always disclosable, with a new power for the Secretary of State to broaden the definition of registerable beneficial owners.
The Required Action: Overseas Entities must scrutinise their corporate structure, ensuring disclosure compliance, even with trustees above the current Register of Beneficial Owners (RBO).
Private Corporate Trustees
Previously exempt in some cases, private corporate trustees are now disclosable beneficial owners of overseas entities, closing a small loophole.
The Required Action: Overseas Entities owned by a corporate trustee must ensure disclosure, removing any reliance on the previous exemption.
New Beneficial Owner
Land held by overseas entities for others may now classify the beneficiary by Beneficial Ownership or as a beneficial owner. No de minimis exists, potentially requiring disclosure even for small ownership percentages.
The Required Action: Overseas entities holding land on trust must assess the implications of the new beneficial owner condition.
Changes in Beneficiaries
ECCTA broadens the obligation to disclose changes in trust beneficiaries during the update period, encompassing cases where a trustee ceases to be a registerable beneficial owner.
The Required Action: Overseas entities owned by a trustee should stay informed about any changes to trust beneficiaries during the update period.
If you want to know more about filing your annual update for Overseas Entities check out our complete guide by the name of, “File an Overseas Entity Statement” article
Managing Officers Under 16
ECCTA now mandates that managing officers under 16 must provide the name and contact details of an individual aged 16 or older willing to be contacted about the managing officer.
The Required Action: Entities with managing officers under 16 need to ensure compliance with the new disclosure requirements.
Conclusion
The ECCTA brings sweeping changes, demanding meticulous attention from overseas entities to ensure compliance. From altered address information to enhanced trust disclosures, staying informed is crucial in navigating this evolving regulatory landscape.
Lastly, stay ahead with our specialized support, contacting UK Property Accountants to confidently manage the intricacies introduced by the Economic Crime and Corporate Transparency Act 2023.
